cocs, reassessments & overpayments · hep confirmed that the coc had provided inaccurate...

CoCs, Reassessments &

Overpayments

March, 2019

Julie La Piazza, Partner Services

Rachel Meachem, Core Processing

Sarah Barton, Core Processing

Contents / Agenda

1 CoC Service Progress

2 Reassessments

3 Overpayments

01 CoC Service Progress

Withdrawals within 60 days

increased 9% from the

same point in 2017/18

9%

CoC Working Group Partner Services

Glasgow Operations

Core Processing Glasgow

Core Processing Darlington

Product

Mgt

CoC Working Group Partner Services

Glasgow Operations

Core Processing Glasgow

Core Processing Darlington

Product

Mgt

Alignment

Continuous

Improvement

Automation

Automation

60%

Next Steps

Maximise automation

19/20 Service Agreement

Accuracy

ONE TWO THREE

Key Messages: CoC Service Status

1 Sector performance is improving in key areas

2 Internal process changes that will benefit HEPs and students

3 Focus on accuracy

02 Reassessments

Customer example: Misleading Note

• Aaron has been a student since 2014/15 AY on a

FT History course

• The HEP sent a 2018/19 AY transfer to put Aaron

onto Year 1 of a PT History course

• A note in the free text box indicated that Aaron

had been on the PT version of this course since

his first year

Aaron

What will happen to Aaron’s entitlement if this CoC

is processed based on the information it contains?

A. All of the students FT applications will be cancelled and PT forms requested

putting the student into immediate overpayment for all payments since 2014

B. The student’s 18/19 FT application is cancelled and a PT form requested putting

the student into immediate overpayment for the 18/19 entitlement

C. All of the students FT applications will be cancelled and PT forms requested

putting the student into the collections process for all payments since 2014

Time to VOTE

Customer example: Misleading Note

• If this CoC was processed with the information provided all of Aaron’s FT

applications would be cancelled, PT forms requested and Aaron would

enter collections for all overpaid ML and TF would be clawed back from the

HEP

• However, in Aaron’s case the assessor queried the inconsistencies and the

HEP confirmed that the CoC had provided inaccurate information

• Aaron had not transferred to Year 1 of the PT version of the course but

rather was repeating Year 3 on a part time basis.

• Once clarified, this CoC had no detrimental effect on Aaron’s customer

journey but did have the potential to cause significant financial hardship

Aaron – Answer explained

Customer example: Inaccurate Information

• John applied for Year 3 of 3 in 2017/18

• In June 2018, the HEP sent a repetition CoC to

transfer John onto Year 1 of 3 and indicated that

John’s graduation date was July 2020

John

What will happen to John’s entitlement if this CoC is

processed based on the information it contains?

A. Due to having used his additional year of funding, John’s TFL support would have

been blocked for 2017/18 as this would be his third attempt at Year

B. Due to having used his additional year of funding, John’s TFL and ML support

would have been blocked for 2017/18 as this would be his third attempt at Year 1

C. Regardless of John’s previous attempts at Year 1, he will continue to be entitled to

TFL and ML

Time to VOTE

What will happen to John’s entitlement if this CoC is

processed based on the information it contains?

A. Due to having used his additional year of funding, John’s TFL support would

have been blocked for 2017/18 as this would be his third attempt at Year

B. Due to having used his additional year of funding, John’s TFL and ML support

would have been blocked for 2017/18 as this would be his third attempt at Year 1

C. Regardless of John’s previous attempts at Year 1, he will continue to be entitled to

TFL and ML

Time to VOTE

Customer example: Inaccurate Information

• If the CoC was processed with the information provided, John would

have been repeating Year 1 for the third time so his TFL would be

blocked as he has already used his additional year of funding and his

graduation date would have been changed to July 2020.

• However, the HEP sent a new repetition CoC that indicated John

actually repeated Year 2 of 3 during 2017/18 AY and his graduation date

should be June 2019. John had completed Year 1 in 15/16 and

progressed onto Year 2 in 16/17.

• However, because neither of these CoCs were sent until the end of

term 3 in 2017/18, John was assessed as being entitled to less student

finance than he should have been.

John – Answer explained

Customer example: Late Submission

• Ahmed applied for Year 3 of 3 in the

2018/19 AY after suspending in 2017/18.

• The HEP sent a Health Suspension CoC in

February 2019 with the date of last

attendance as 04/10/2018.

Ahmed

What will happen to Ahmed’s entitlement if this CoC


A. Due to the late submission of a suspension CoC, Ahmed goes into immediate

overpayment

B. Due to the late submission, Ahmed goes into overpayment and SFE have to

clawback tuition fees from the HEP as attendance confirmation was submitted

for Term 2

C. Ahmed has been overpaid but this will not be recovered until he has finished

studying and is earning above the threshold

Time to VOTE

What will happen to Ahmed’s entitlement if this CoC


A. Due to the late submission of a suspension CoC, Ahmed goes into immediate

overpayment

B. Due to the late submission, Ahmed goes into overpayment and SFE have

to clawback tuition fees from the HEP as attendance confirmation was

submitted for Term 2

C. Ahmed has been overpaid but this will not be recovered until he has finished

studying and is earning above the threshold

Time to VOTE

Customer example: Late Submission

• The late submission of the suspension CoC meant that

Ahmed was overpaid a portion of his 1st instalment of MG

and all of his 2nd instalment of MG

• Also as the HEP had confirmed attendance for Term 2, SFE

also had to clawback tuition fees as the student did not

attend any of Term 2

• This late submission of a suspension particularly affected

Ahmed as the HEP had also sent a delayed suspension in

2017/18, so Ahmed’s MG had already been reduced

Ahmed – Answer explained

Key Messages: Reassessments

1 Inaccuracies can cause incorrect entitlement and

unnecessary rework

2 Timely submissions of CoCs is crucial in preventing

overpayments

3 Inaccuracies and late submissions can impact students in

various ways including financial hardship and risks achievement

in future study.

Customer example: Part Year Repeats

• Jane began studying in 2016/17 AY on Year 1 of 3

on a September start course

• Jane then repeated Year 1 on September intake

in the 2017/18 AY.

• We then received a transfer CoC in December

2018 to put the student onto Year 2 of 3 on the

January intake of the same course.

Jane

Customer example: Part Year Repeats

• Jane will need to remain on the September intake

for the duration of course for student finance

purposes

• To ensure these part year repeats are processed

correctly in the future the following process

should be followed

Jane – Scenario explained

Repetition CoC

Part Year Repeats

ONE

SFE

Study

16/17 17/18 18/19 19/20

Starts Sep intake

YR 1

Repeats

1st YR

module

Starts YR

2 in Jan

intake

Completes

YR 2

Starts

YR 3 in

Jan

intake

Completes

YR 3

& degree

TWO THREE

Fee CoC

Transfer CoC

Repetition CoC

Part Year Repeats

ONE

SFE

Study

16/17 17/18 18/19 19/20

Starts Sep intake

YR 1

Repeats

1st YR

module

Starts YR

2 in Jan

intake

Completes

YR 2

Starts

YR 3 in

Jan

intake

Completes

YR 3

& degree

Part Year Repeats

SFE

Study

16/17 17/18 18/19 19/20

Starts Sep intake

YR 1

Repeats

1st YR

module

Starts YR

2 in Jan

intake

Completes

YR 2

Starts

YR 3 in

Jan

intake

Completes

YR 3

& degree

TWO

Transfer CoC

Part Year Repeats

SFE

Study

16/17 17/18 18/19 19/20

Starts Sep intake

YR 1

Repeats

1st YR

module

Starts YR

2 in Jan

intake

Completes

YR 2

Starts

YR 3 in

Jan

intake

Completes

YR 3

& degree

THREE

Fee CoC

Key Messages: Part Year Repeats

1 Student must stay on original intake

2 Three CoCs required over the course of the student’s full study

programme

3 Possible process improvements in future

03 Overpayments

Currently SLC is owed over £167

million in overpayments (OP),

effecting approximately 106

thousand students.

£167 million

What percentage of overpayments are as a

result of withdrawals?

A. 15%

B. 25%

C. 38%

Time to VOTE

38% of overpayments are

due to withdrawals.

Other reasons for overpayment:

Incorrect customer information, over

estimating current year income and

childcare amounts, inaccurate or late COCs.

38%

Average Overpayment amounts

£1,2

77.0

0

£1,5

73.0

0

£2,1

41.0

0

Grant Overpayment

Loan Overpayment

PGL Overpayment

Average Overpayment amounts

Statistics

• Average over all accounts

across the 3 products is £1494

• The average entitlement for

these customers was £3149

How much you think SLC have been able to

recover through the Clawback process?

A. £24 million

B. £5 million

C. £10 million

Time to VOTE

Over 24 million pounds of

overpayments have been

recovered from future funding.

£24m +

Overpayment complex scenarios

Customer example overpayment

• Overpayment of £3000 maintenance loan

in 2017/18 –late withdrawal submission.

• Contacted by SLC via letter to advise

how much her overpayment was for and

ways to contact us to repay. At this point

her overpayment is pursued by

collections.

Rachel


• Rachel does not make any repayments

towards her overpayment while she is not

in study. Rachel returns to study in

2018/19 to study an art degree.

• 6 weeks before the start of her course -

removed from collections process and

will receive a notification to advise

remaining overpayment will be recovered

from 2018/19. In this example it is £3000.

Rachel


Her £3000 recovery is split between her 3 instalments, recovering:

£990 from instalment 1



Just before the start of term 2 Rachel withdraws from her art degree course – as we have

only recovered £990 at this point, this leaves a remaining overpayment amount of £2010.

Rachel

What will happen with Rachel’s remaining

overpayment amount of £2010?

A. Rachel will move back into the collections process.

B. We will add the overpayment amount to the remaining balance and

we will just recover when Rachel graduates and is earning over the

threshold.

C. Rachel will be expected to pay the entire £2010 in one lump sum

after her withdrawal.

Time to VOTE


• Rachel will move back into the

collections process to recover the

remaining £2010 overpayment.

• She will be contacted by collections

to advise of this and how to repay.

Rachel – Answer explained

Key Messages: Rachel’s scenario

1 We will always try to recover overpayment from future funding.

2 If the customer is not in study their overpayment will be pursued via

the collections process.

3

If a customer returns to study and we can recover from future

funding, 6 weeks prior to the start of their course they will receive a

revised notification of their overpayment balance, taking into account

any repayments.


• Overpayment of £1000 maintenance loan

in 2017/18 –mistake in his application.


amount and ways to repay. Overpayment

is pursued by collections.

Ben


• No overpayment repayment during his

time away from study.

• Returns to a new course in 2018/19 to

study a science degree.

• 6 weeks before the start of his course

he is removed from collections and any

remaining overpayment will be clawed

back from 2018/19. In this example it

is £1000.

Ben


His £1000 is split between his 3 instalments, recovering:




Whilst in term 3, his previous 17/18 application is reassessed reducing

his original overpayment amount to £500. We have already recovered

£660 from Ben which put him into a credit balance of £160.

Ben

Ben is in a credit balance of £160 and therefore will be

paid the amount that he is in credit. When should Ben

expect to receive his credit balance amount?

A. 3-5 working days from reassessment date.

B. 8-10 working days from the reassessment date

C. 48 hours from the reassessment date.

Time to VOTE


• The £160 that Ben will be owed will be paid in 8-10 working days.

• This is because the system does not automatically pay a credit

balance and as a result we run a bi-weekly sweep to identify

these customers and schedule further payment.

• If the customer is in hardship and really can’t wait 8-10 days this

can be escalated through the normal channels to request a

manual payment.

• Please note this is in exceptional circumstances.

Ben


• The £160 that Ben will be owed will be paid in 8-10

working days.

• This is because the system does not automatically pay

a credit balance and as a result we run a bi-weekly

sweep to identify these customers and schedule further

payment.

• If the customer is in hardship and really can’t wait 8-10

days this can be escalated through the normal channels

to request a manual payment.

• Please note this is in exceptional circumstances.

Ben – Answer explained

Key Messages: Ben’s scenario

1 Reassessments can occur at any time changing an overpayment amount

2 If the customer is entered into a credit balance this will be paid to the customer,

but takes 8-10 working days for the payment to be processed

3 If the customer is in financial hardship and cannot wait 8-10 days, a manual

payment can be requested


• Overpayment of £600 part time

maintenance loan in 2018/19 due to

incorrect course intensity information

being held on CMS.


how much her overpayment was for and

ways to contact us to repay.

Hannah


• At this point her overpayment is pursued

by collections as the mistake was rectified

after she had finished her course year.

• Hannah does not pay any of her

overpayment during her time away from

study. Hannah applies to return to study in

2019/20 to study a full time PGCE course,

and is entitled to full time maintenance

loan.

Hannah

What will happen with Hannah’s overpayment

at the point she returns to study in 2019/20?

A. As she is returning to study the £600 will be recovered from her

future funding.

B. She will remain in the collections process.

C. Her OP will be added to the overall balance and pursued once she

has graduated and is earning over the threshold.

Time to VOTE


• The overpayment of £600 will continue to be pursued by

collections as Hannah has changed mode of study and has

a different loan product.

• As Hannah is in study she can discuss with collections what

repayments are affordable to her whilst she is in study. This

would be arranged based on what is reasonable taking into

account Hannah’s income vs expenditure.

Hannah – answer explained

Key Messages: Hannah’s scenario

1 Overpayments can only be recovered from future funding where the mode

of study remains the same - PGL, PT and FT can not be recovered from

each other, only like for like.

2 When we are unable to recover overpayment from future funding, the

overpayment will be managed within our collections department.

3 The customer can discuss with our collections team, what repayments are

affordable whilst in study. This would be arranged based on what is

reasonable taking into account income vs expenditure.

Financial Hardship

Financial Hardship (FHT)

• When a customer is due to have their

overpayment recovered, there will be occasions

where their 3 instalments can be significantly

reduced.

• This can place a customer into financial

hardship

• The FHT can consider making payments to

customers early, deferring partial or full

recovery of overpayments to a different

academic year, and continuing to pay students

whilst they have suspended their studies.

Background

Financial hardship

Must have applied for

all funding they are

entitled to e.g. can

they apply to be MT,

all outstanding

evidence has been

fully processed.

Recommend

speaking to HEP in

the first instance

where possible -

advice on budget

planning and

affordability prior to

applying for hardship.

Overpayment must

have been gained in a

previous academic

year - cannot apply

discretion on an

overpayment gained

in the same year

unless the customer

has suspended.

If applying 4 weeks +

before returning to study

- recommend applying

closer to time. This

allows us to have a clear

and accurate picture on

income /expenditure,

when the customer is

due to return to study..

ONE TWO THREE FOUR

Steps to applying

Financial Hardship

• Completed financial hardship confirmation form

–issued via HEP / contact centre / assessors

• 3 months bank account for all accounts -

including savings /current accounts / credit

cards – annotated

• Evidence of future obligations - rental / tenancy

agreement, insurance policy, any loan

agreements, debt / arrears letters (not apparent

from bank statements).

What will the customer need to provide

Financial Hardship

• Taken steps on budgeting and have reasonable

obligations based on trigger figures.

• What is an affordable amount of overpayment

to be offset, or payment to be brought forward

based on income vs expenditure.

• Does the customer have savings / part time job

which will support them in being able to pay

back some / all of the overpayment.

• Decision - can we offset the overpayment and

how much this will be for - discussed with the

customer prior to payment being made.

What the financial hardship

team will consider

Statistics

• Amount of customers applying for hardship in 2018 was minimal (between 5-10%)

• Of the customers who applied for hardship in 2018, 71% of those were approved

to either have their payment brought forward or overpayment offset

• Reasons for declining a customer could include:

• Customers still awaiting for evidence to be processed, which would

mean no longer in hardship

• Customer showing they can meet their obligational demands through

income vs expenditure

• Customers asking for offset of same year overpayments

Key Messages: FHT

1 From time to time a customer may need to apply for hardship, based on how much

overpayment we are due to recover from future funding.

2 By ensuring COCs are submitted on time and are accurate, customers keep us up to date

with changes and course information being correct, can minimise the likelihood of large

overpayments.

3 A customer should only apply to the FHT if they are facing financial hardship and will be

expected to provide evidence of their income vs expenditure.

4 There are various solutions the FHT may be able to offer such as bringing a payment date

forward or looking at a partial or full offset of the overpayment recovery.

5 We would urge customers to seek advice from HEP and other sources around budget

planning and reasonable expenditure, to prevent financial hardship again in the future.

Summary

1 Continuous improvement is key principle in the CoC service

– more changes to come

2 Timely submission of accurate CoCs is key to ensuring students have the

correct entitlement when they need it

3 SLC will try to recover overpayment from future funding where it is

possible. If the customer is not in study the overpayment will be managed

within our Collections department

4 Where overpayment recovery causes financial hardship, there may be

additional support available for these students

Partner Services

[email protected]

0300 100 0642

www.heiinfo.slc.co.uk

Thank you

cocs, reassessments & overpayments · hep confirmed that the coc had provided inaccurate...

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